Investor Presentaiton
186
E)
recognised amounts and there is an intention to settle on
a net basis, to realise the assets and settle the liabilities
simultaneously.
Derivatives
Derivative instruments are initially recognized at fair
value on the date a derivative contract is entered into
and are subsequently re-measured to their fair value at
the end of each reporting period. The accounting for
subsequent changes in fair value depends on whether
the derivative is designated as a hedging instrument,
and if so, the nature of the item being hedged and the
type of hedge relationship designated. The resulting
gain or loss is recognized in the consolidated statement
of profit and loss immediately unless the derivative is
designated and effective as a hedging instrument and
is recognized in Other Comprehensive Income (OCI).
Cash flow hedges shall be reclassified to profit or loss
as a reclassification adjustment in the same period
or periods during which the hedged expected future
cash flows affect profit or loss. If hedge of a forecast
transaction results in the recognition of a non-financial
asset or a non-financial liability, then the gain or loss
that are accumulated in the cash flow hedge reserve is
recognised in the initial cost or other carrying amount
of the asset or liability (this is also referred to as "Basis
Adjustment").
The Ministry of Corporate Affairs (MCA) vide notification
dated 24th March 2021, has amended Schedule III to the
Companies Act, 2013 to enhance the disclosure requirements
in financial statements. The financial statements have been
prepared after incorporating the amendments to the extent
they are applicable.
F)
Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) on 31st March 2023
through Companies (Indian Accounting Standards) Amendment
Rules, 2023 has notified the following amendments to IND AS
which are applicable for the annual periods beginning on or
after 1st April, 2023.
a) IND AS 1 Presentation of Financial Statements -
This amendment requires the Company to disclose its
material accounting policies rather than their significant
accounting policies.
The Company will carry out a detailed review of
accounting policies to determine material accounting
policy information to be disclosed going forward.
The Company does not expect this amendment to have
any material impact in its financial statements.
b) IND AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors - This amendment has changed the
definition of a "change in accounting estimates" to a
definition of "accounting estimates". The amendment
clarifies how companies should distinguish changes
in accounting policies from changes in accounting
estimates.
c)
The Company does not expect this amendment to have
any material impact in its financial statements.
IND AS 12 - Income Taxes - This amendment has
done away with the recognition exemption on initial
recognition of assets and liabilities that give rise to equal
and offsetting temporary differences.
The Company does not expect this amendment to have
any material impact in its financial statements.View entire presentation